ADVANCING MISSING MIDDLE SKILLS For Human–AI Collaboration Contents

4 HUMAN SKILLS SURGING 8 IN DEPTH: FUSION SKILLS AND INTELLIGENCES 10 GETTING THE RIGHT SKILLS 12 MUTUAL READINESS 15 ACCELERATED ABILITY 18 SHARED VALUE 21 IN DEPTH: TRAIN OR HIRE? 23 THE WAY FORWARD 24 ABOUT THE RESEARCH

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN – AI COLLABORATION 2 What will the future of work look like? Will machines be on one side of the room, performing certain jobs, while on the other side, humans carry out different roles? Our research reveals that such a stark division of labor is unlikely. Instead, the in-between space— what Accenture calls “the missing middle”—is where intelligent technology and human ingenuity will come together to create new forms of value. Robots, by and large, will not be taking our jobs. Instead, human-machine collaboration will reconfigure most of the work we do, making uniquely human skills more important than ever.

This paper explores the nature of these skills—higher-level intelligence skills—that we all possess but could use more. Developments in the science of learning show how these exclusively human capabilities can be developed and applied so we can achieve the full potential of the missing middle.

To grow these skills, employees must develop a lifelong learning mindset, while employers must establish conditions to nourish the desire and capability of people, and invest in skills development. HUMAN SKILLS SURGING

As companies rapidly adopt intelligent This human-machine collaboration will technologies, the complex impact of augment human capabilities, unleashing these changes on work is coming into productivity advances along with more focus. While it is true that some jobs will creativity, innovation and growth. We are exclusively be done by humans while leaving the “Information Era”, when other roles will be taken on by machines machines delivered data that improved via intelligent automation, most of the processes and products, and entering the emerging roles will be fulfilled by both “Experience Era”, during which uniquely working together in the dynamic space human skills will deliver more personalized Accenture calls “the missing middle.” and adaptive customer experiences (see Figure 1: The Human Skills Surge).

The Information Era required legions of smart engineers to build software, networks and algorithms. But the Experience Era will need people with social and leadership abilities who can improvise and show good judgment, such as those who can train Artificial Intelligence (AI) systems and make sense of the data generated by AI. Training chatbots to be empathetic to customers is the kind of complex, creative activity that will characterize more roles in the future.1 Figure 1: THE HUMAN SKILLS SURGE

2010s

1970s

1760s EXPERIENCE ERA Machine intelligence amplifies INFORMATION ERA humans Machine data informs INDUSTRIAL ERA humans Collaborative Intelligence • Unconstrained creativity of Machine automation aids Human+Machine Knowledge Management PRE-INDUSTRIAL humans • Managing hyper-relevant experiences • Creativity of service design and • Socio-emotional intelligence and HEAT Machine-like delivery Operations Management (humanities, engineering, arts, humans • Managing data, information technology) or multidisciplinary skills • Creativity of product and process • Analytical reasoning and STEM design (science, technology, engineering, Resource Ingenuity • Managing operations, personnel, math) or technical skills • Creative use of natural resources finances • Managing materials and manual labor • Communication, coordination and Source: Accenture Research • Physical strength, stamina, body organization skills equilibrium abilities The relative importance of physical, operational and simple analytical skills has waned, even in job profiles focused on physical Our analysis of the U.S. Department of Labor’s O*NET database of strengths and machine operation (see Figure 2: Evidence of occupational data provides evidence of this surge in skills.2 Human Skills Surge in U.S. Jobs). We analyzed the evolution of more than 100 abilities, skills, tasks, and working styles in the U.S. over the last decade and found that For instance, industrial engineers now find themselves interacting creativity, complex reasoning and socio-emotional intelligence more with leadership and shop-floor personnel to develop have sharply increased in importance for many jobs. production and design standards, rather than maintain equipment. Similarly, because of automation, sales personnel write client Specifically, more than half of U.S. jobs need higher-level reports and maintain paperwork less frequently than in the past. creativity, over 45 percent require more complex reasoning, and Consequently, socio-emotional intelligence for connecting with 35 percent need more socio-emotional skills than in the past. clients is now more germane to the job.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 5 Figure 2: EVIDENCE OF HUMAN SKILLS SURGE IN U.S. JOBS

Change in the importance of skill type in U.S. from 2004 to 2016 (100% = 151M jobs in U.S. as of 2016)

Less important Equally important More important Source: Accenture Research analysis of O*NET database

6% 14% 21%

44% 53% 53% 47% 58% 64% 67% 44% 86% 100% 100% 86% 14% 9% 56% 3% 47% 41% 36% 33% 33% 33% 33%

6% 14%

The surge of socio-emotional and multidisciplinary skills is reflected not only in what workers do, but also in the way companies assemble teams. Consider the example set by Autodesk. The leading 3D design software creator is making its “The companies that do not associate AI AI-enabled Autodesk Virtual Assistant (AVA) more emotionally with EI (emotional intelligence) are going to intelligent. The team includes application engineers and data scientists as well as user-experience designers, creative writers miss the mark.”—Rachael Rekart, Director and conversational engineers who design personas, shape of Machine Assistance, Autodesk linguistic patterns, and improve the user experience. Today, AVA handles about 15 percent of English customer support conversations. Call-resolution times have decreased, and human customer service representatives can now focus on more complex issues.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 6 For many workers, traditional forms of work have comprised routine and repetitive tasks. The new AI-based workplace, however, will require employees to tap higher-level human-only intelligences (see Fusion Skills and Intelligences). While the skills in the “missing middle” enable working with machines, they don’t necessarily require additional expertise in machine learning or robot programming. They require thoughtful people who are better able to apply socio-emotional, creative and complex reasoning skills to the specific needs of the business.

New forms of training are therefore urgently required to help people develop and apply these higher-level intelligences.

Academic studies are proving that training focused on mindset and socio-emotional intelligence is more effective than technical education. In one recent study, MIT Sloan evaluated a 12-month in-factory training program on communication, problem solving, decision-making and stress management. It found the training returned roughly 250 percent on investment within eight months of its conclusion, mainly from boosts in worker productivity and speed with complex tasks.3

When creative humans and machines work together as allies instead of adversaries, they enhance each other’s strengths. With support from machines, humans are free to apply advanced socio-emotional intelligence to develop a better understanding of customer needs and create entirely new customer experiences. Human conscience and self- discipline will also help companies use AI in an ethical and human-centric way. IN DEPTH FUSION SKILLS AND INTELLIGENCES

“Human+Machine”, written by Accenture’s Paul Daugherty and James H. Wilson,4 describes eight fusion skills—abilities for combining the relative strengths of a human and machine to create a better outcome than either could achieve alone. These fusion skills guide managers and workers in designing and developing a workforce capable of thriving in the “missing middle.”

Three of these skills allow people to help machines (the left side of the missing middle); the other three enable people to be augmented by machines (the right side of the missing middle). The last two help people skillfully work across both sides of the missing middle (see About the Research).

We identify the underlying core intelligences of each fusion skill. Intelligences (or competencies) relate to a person’s unique aptitude, set of capabilities and ways they might prefer to demonstrate intellectual abilities. We assess these intelligences in the context of academic literature on the many approaches toward human potential. Among them is the theory of multiple intelligences developed by Howard Gardner, the triarchic theory by Robert Sternberg and the growth mindset theory by Carol Dweck. Recent studies highlight the significance of intrapersonal intelligences, including intuition and a growth mindset as the most influential on worker performance.

Andy Clark, David Chalmers and others are on the forefront of an exciting new field of study known as embodied or extended cognition—the theory that what we think of as brain processes can take place outside of the brain.

They propose that people naturally use technologies to augment themselves, incorporating tools and technologies as part of their own cognition. From eyeglasses to bicycles to fighter jets, these tools, when used often enough and at an expert level, can feel like extensions of our bodies and minds. AI brings another dimension to this kind of biotechnical symbiosis.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 8 We propose that the following 10 intelligences will gain prominence (8) intrapersonal in the AI workplace: (9) moral intelligence, and (10) growth mindset (see Figure 3: Fusion Skills and Intelligences (1) physical/sensory abilities Matrix). (2) embodied or extended cognition (3) strategic intelligence While these 10 intelligences are not mutually exclusive or exhaustive, (4) practical they provide a broad guideline for business leaders directing (5) analytical training efforts and forming teams. In the age of human-machine (6) creative collaboration, these core intelligences will be critical to the future (7) interpersonal workforce.

Figure 3: FUSION SKILLS AND INTELLIGENCES MATRIX Dominant Basic Core intelligence underlining human-only and missing middle roles

Core Intelligences Interpersonal

Fusion Skills

Human- Lead only activity Create Judge

Empathize

Humans Re-humanizing Time manage machines Responsible Normalizing Judgment Integration

Machines Intelligent Interrogation augment humans Bot-based Empowerment Holistic Melding

Humans manage machines + Machines augment humans

Source: Accenture Research deconstruction of fusion skills described in “Human+Machine” book authored by Paul R.Daugherty and James H. Wilson. Refer to the appendix for research approach & definitions.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 9 GETTING THE RIGHT SKILLS

Today, 61 percent of activities in the Almost half of the executives Accenture • Many workers feel their companies missing middle require employees surveyed recently said they consider the should do more to help. They cite lack to do different things, and to do growing skills gap as one of the top three of time (48 percent), lack of things differently. That means trends affecting their workforce sponsorship (37 percent) and lack of reimagining processes and strategy.6 Our research reveals that resources (36 percent) as the biggest committing to lifelong learning.5 workers and business leaders have very barriers to developing new skills. different perceptions of the skills gap:

• Business leaders, on average, believe only about a quarter of their workforce is prepared to work with AI and machines. Many leaders find it challenging to encourage employees to make time for learning new skills.

• Yet, over 60 percent of workers have a positive view about the impact of intelligent technologies on their work. Over two-thirds of workers recognize the importance of developing their own skills to work with intelligent machines.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 10 Figure 4: THREE DIMENSIONS OF SKILL DEVELOPMENT

How can companies and employees find common ground and reconcile their differences?

Based on our research and analysis, we believe three dimensions are essential to successfully developing the human skills and higher-level intelligences that will enable human-machine collaboration:

1. Mutual Readiness: Everyone must be ready to change and invest in training to prepare for a world of human-machine partnerships.

2. Accelerated Ability: Educators and learners must call upon scientific techniques and smart technologies to learn faster, stretch thinking and tap latent intelligences.

3. Shared Value: Together, employers and workers must create and maximize the motivation to learn and adapt.

Let’s look at some examples of companies that have found success in executing one or more of these three dimensions.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 11 MUTUAL READINESS

Companies should commit to long- Prepare for change Success hinged on careful planning and term investments in workforce skills Executives need a clear long-term focused execution. The AI initiative was development, while employees strategy and should be able to outline the communicated to employees between should start adapting their skills for top business initiatives for the coming one and two years ahead of time. Top AI. But this readiness to change is years, communicate the possible management made sure to outline a feasible only when both company workforce implications and build support strategy and fully explain which skills and worker have opportunities to structures to transition employees. would be required and which would realize their common aspirations in Change-management planning must become unnecessary for alternative roles the new workplace. precede any AI-driven business initiative. within the company.

Consider how a large fintech company Employees factored the changes into their prepared for AI-led change: When the own career planning and mapped their company implemented an AI-based call forward route with line managers— center agent to handle simple “low- electing either to stay and upskill, move to severity” customer service issues, many a different role with training or move to a job tasks became redundant. The similar role elsewhere. company had to let some employees go, but gave the remaining majority an opportunity to learn how to handle “high- severity” cases alongside the chatbot.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 12 Reimagine work Leaders should shift from “planning the workforce” to “planning the work.” They must assess which tasks will be needed and which skills will be required to fulfill those tasks. They also need to map internal capabilities to new roles and then develop new skills to bridge talent gaps.

PlainsCapital Bank, one of the largest independent banks in Texas, reimagined the nature of the work its people were doing. After it introduced digital banking services, demand for human bank tellers started to decrease. The company then combined the tasks of on-site teller, adviser and customer service agent, creating the role of Universal Banker. Universal Bankers need better interpersonal skills, strong problem-solving abilities and more creativity, as well as knowledge of the products and the customer experience.

To fill these new jobs, the bank changed the selection process to behavioral- based interviewing, based on the belief that how someone acted in past situations can be a predictor of future performance. Once PlainsCapital finds a good match from a pool of internal candidates and identifies where they need skills development, the organization provides the relevant training, whether in technical skills, soft skills or both.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 13 Use AI to tap potential and align aspirations Predictive AI algorithms can recommend job tasks and training programs suited to each worker. As such, companies should seek out everyone’s hidden talents, transferrable skills and life aspirations with the help of AI. The algorithm’s baseline assessments can then be validated through discussions between employees and their managers or “Our approach to finding mentors before charting a course of action. the right person for the job At Nestlé, leadership clearly communicates is focusing on the potential why workforce change is positive for both of the individual for the individuals and the business, and empowers future challenge(s), rather employees to facilitate decision-making. Joint decision-making between employees than existing skills and and line managers accounts for 90 percent capabilities.”—David Gaal, of the effort to successfully transition Nestlé Italy Head of Talent employees to new work.

While the organization provides work opportunities and support structures, the employees plot out career paths that align with their personal interests and aspirations. Employees cultivate a growth mindset about technological change, which helps them persist through learning challenges.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 14 ACCELERATED ABILITY

Use scientific methods structure and function. These findings Executives can draw on neuroscience suggest that higher levels of cognitive techniques to reduce learning time, and socio-emotional intelligence can be increase retention and optimize the developed with the right mental training brain’s capacities. at any age.

Neuroscience is illuminating how the “Mindfulness” interventions that brain acquires, stores and uses encourage present-moment awareness information. Researchers are learning have proven benefits for cognitive how the brain responds to rewards and processing, raising IQ levels and feedback, how the use of game-play (or improving resilience.7 Participants in gamification) can forge emotional Accenture’s Mindfulness program, for connections and reduce cognitive example, reported notable overload, and how to adjust for improvements in their ability to focus differences in learning ability. and prioritize tasks and collaborate within teams. Above all, neuroscience is challenging the conventional notion that our brains are static after age 20 or so. Recent studies on neuroplasticity have discovered that our brains, including the “social brain,” continue to change in both

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 15 Enable learning with smart A Fidelity employee is “transported” technologies between a call center and the customer’s Leaders should offer experiential and living room so they can understand the interactive programs so workers can learn impact of listening and helping the at convenient times. Training with customer through real scenarios.9 intelligent, mobile technologies can accelerate progress on the learning curve. Not only do they lower training costs, VR and AR technologies are more effective. A In an Accenture survey, 77 percent of global industrial services company found a organizations said they are planning to 34 percent improvement in workers’ “If designed well, AI can make introduce, or are already using, digital performance when they used an AR work itself a growth personal assistants and other AI tools to headset to communicate information help improve personal productivity.8 instead of a traditional instruction manual.10 experience—projects that Indeed, the potential to enhance learning offer life-building knowledge and productivity using smart technologies Education companies are bringing the best and support the individual’s is both substantial and inclusive: With the of AI and neuroscience to corporate all-around development.”— pervasiveness of technology, almost learning and development. Startups like the anyone can access a robot tutor or virtual Silicon Valley-based Socos Labs, the Vivienne Ming, Founder and teaching assistant matched to their learning Lausanne-based Coorpacademy and the Chair, Socos Labs need, style and pace. AI-based adaptive Paris-based Insideboard offer adaptive learning platforms with built-in analytics learning experiences using AI algorithms can personalize coaching and feedback. and scientific principles. These companies customize modules to make learning more Virtual reality (VR) and augmented reality entertaining and easier to absorb. (AR) are being used to simulate real-world situations, onboard new employees and even train people in the development of socio-emotional skills. Fidelity Investments, for example, uses VR for empathy training.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 16 Accenture’s Talent Platform accelerates skills in New IT

Bring people together to teach people who developed Android. Google The Accenture Future Talent Platform each other notes that an employee-to-employee provides a personalized, interactive People learn best from others—whether learning program is not about cutting and on-demand learning solution, through one-on-one coaching or from costs, but about creating a culture that helping companies develop their knowledge exchanges in a larger group. values knowledge sharing.11 workforces in critical areas such as As such, companies should nurture digital, cloud, security and artificial in-person engagements, share Danone, the French multinational food- intelligence. Subject matter experts knowledge in the community and products corporation, also encourages can curate learning boards for a welcome outside-in learning, while learning from the outside in and enables better, faster learning experience, providing role models to inspire learners. cross-fertilization of ideas through and users can interact with each “learning expedition” programs with other by following, commenting and Google helps employees keep their skills startups, universities, non governmental contributing to their favorite boards. current and valuable by fostering peer- organizations and the public sector.12 A mobile app enables learners to to-peer connections. Workers move pick up new skills anytime, anywhere around the organization and learn new To explore new careers, experienced and allows leaders to track learning skills on the job, not by attending individuals are now opting for internships progress—in real time. mandatory training seminars. Some 80 inside the company or even outside. A percent of all tracked training at Google key part of AT&T’s retraining effort is the Accenture has been using the Future is now done through g2g (Googler-to- experienced internship program, which Talent Platform internally to reskill Googler), a voluntary network of 6,000- lets workers who have added skills try more than 165,000 people globally plus employees who dedicate a portion out a new position for a limited test run. in the latest digital technologies— of their time to helping peers learn. For example, one 20-year veteran of the or New IT—for the past two years. company used the program to make a Users can explore more than 3,500 Volunteers can participate in numerous switch from billing systems to team learnings boards curated by emerging ways—teaching courses, providing facilitator in the software interface technology experts within Accenture one-on-one mentorship and designing development unit.13 and from its partners. Now, Accenture learning materials. In one example, is bringing these learning capabilities thousands of Googlers went through an to other companies to help them Android training boot camp run by the reskill their employees and run agile, intelligent businesses. SHARED VALUE

Companies must recognize and uphold Discover’s Tuition Reimbursement the value of education and lifelong Program has yielded a 144 percent return learning, which includes giving on investment in the form of lower talent- employees time to adjust and extend management costs (people stay longer their abilities. Employees, in turn, must and are being promoted into new jobs, co-invest their time and effort to acquire saving recruitment costs) and higher new ways of working. productivity (less absenteeism).

Danone recognizes the intangible value Employees participating in the program associated with a trained, engaged receive, on average, annual wage workforce. The company has set a increases that were at least 41 percent strategy called “one learning a day” to greater than those for non-participating give each employee opportunities to employees, achieve more promotions learn.14 Danone has invested significantly (+21 percent) and lateral transfers (+9 in upskilling to nurture the company’s percent), stay longer (+0.5 percent) and culture as a competitive advantage. So take fewer unplanned days off (-0.4 far, Danone says, employees are percent). Discover estimates the total motivated by the availability of career- financial benefit at US$18.5 million development guidance and training. across all four factors assessed, or net savings of US$10.9 million after Discover Financial sees tangible value in deducting the investment cost.15 paying for workers to go back to school.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 18 Create a sense of safety and Walmart has spent around US$2.7 billion in Consider Singapore, which has established well-being education, training and higher wages—an a national movement called the Executives should foster well-being among investment that includes 200 brick-and- “SkillsFuture.” The government offers a employees about the AI transition, and mortar Walmart Academies, which have variety of resources, including study understand that each person is unique and produced 225,000 graduates as of the end subsidies and direct credits, to help will be motivated and inspired by different of 2017. Its Pathways training program citizens attain mastery of skills at any stage things at different points in time. offers associates a clear career path from in life—schooling years, early career, mid- entry-level positions to management jobs career or silver years. The government has To learn and create, people need to feel with more responsibility and higher pay.18 also set up a dedicated “Task force for psychologically safe. If an AI-driven change Responsible Retrenchment and to the workplace makes employees Co-fund learning Employment Facilitation.” Seven in 10 anxious, even the most-thought-out Leaders should co-develop (i.e., retrenched workers who were helped by retraining programs may flounder. crowdsourced learning content) and co- this task force in 2017 were able to find jobs fund (i.e., shared financing) skill within six months.20 Give employees ample time to adapt and development programs with employees as prepare for new tasks and support them well as with educational institutions, with wellness and counseling programs. governments and nongovernmental The online mental health services provided organizations. by AI-human hybrid platforms like Wysa and Juno Clinic to IT professionals in For example, the Aspen Institute Future of response to job loss concerns in India’s Work Initiative has proposed tax- technology outsourcing industry are one advantaged “Lifelong Learning and Training example.16 Accounts” in the United States.19 These accounts would be funded by workers, Then, to maximize workers’ potential, employers and government, and would be organizations must inspire them by stoking available to workers anytime during their their passions and interests and helping careers to pay for education and training. them grow. Studies have shown that Lifelong Learning and Training Accounts extrinsic factors are less effective for would provide a better-trained workforce, learning and creativity than intrinsic help retrain mid-career workers, improve motivation.17 unemployed workers’ job prospects and ease reliance on the safety net.

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 19 Encourage lifelong learning Leaders should track performance outcomes, engagement and evolving aspirations to continuously reimagine work and lifelong learning, while keeping a long-term perspective on the workforce.

Salesforce’s learning platform, Trailhead, provides employees and customers with an interactive way to learn at their own pace and navigate new career paths. Trailhead offers more than 450 virtual badges and super-badges, which prove the learner has applied their skills to advanced real-world business tasks.

The platform has helped several Salesforce employees acquire “remote” skills to change roles and break into careers that otherwise would not have been available to them. For instance, after learning how to code on Trailhead, one employee moved from a recruiter job to an engineering role. Another with specialization in nursing used Trailhead to get up to speed at her new job as a Salesforce solution engineer. Importantly, employees can display these badges on their online profiles to showcase transferrable skills.21 IN DEPTH TRAIN OR HIRE? “Ultimately, we will need to reskill existing Accenture research and the 2019 World Development Report found that employees as there will soon be a huge the most-sought-after trait nowadays is adaptability: the readiness to respond to unexpected circumstances and learn quickly.22 For many, it’s a imbalance in supply and demand. We also challenging trait to aquire. have a moral obligation to train the future workforce in association with the broader More than 40 percent of executives surveyed by Accenture said hard-to- education system.”—Kees van der Vleuten, change processes are hindering their efforts to train employees in new former Global Transformation Director, VEON skills. And one-third of employees said they expect AI will make their jobs more complex, adding to their workload and increasing pressure to perform.23 A fear of being displaced by new hires looms large for many workers. But favoring excessive hiring over retraining may not lead to positive outcomes. For example, the move into online banking forced one midsized Leaders can alleviate the situation by striking the right balance between bank to close almost half of its branches, affecting thousands of staff training and hiring. Companies are under so much pressure to fend off members. Rather than invest in retraining, the company chose to make disruptive competitors that they often decide to hire talent from the 90 percent of staff redundant and retrain only 10 percent to work in outside rather than make a long-term investment in retraining their own call centers. To fill other new roles in the online banking business, the people. company hired new people. The move damaged morale among remaining workers, even those whose jobs were not at risk. An Accenture survey found that only 3 percent of companies are planning to significantly increase their investment in skills-development programs Even if companies are hiring outside for certain skills, they can in next three years. But long-term competitiveness requires a highly simultaneously transition current employees to “the new.” When a engaged workforce made up of both existing employees (who are likely to large payments company introduced a predictive AI solution to better be motivated to learn and develop) and outside hires (who bring in new understand employee engagement and retention, it added new people to expertise and perspectives). the HR team—70 percent were new hires. The external hires brought in the necessary data and computer science skills, but also helped retrain the When determining the right balance, executives should consider several remaining 30 percent on statistical analysis, creating a new department: factors, such as the type of skills that are needed, whether those skills HR Analytics. are in adjacent roles and the urgency of the business need. Sometimes an outside hire may be the most sensible option. An executive at a large For any transformation to be successful, companies must consider the financial services company we interviewed says the task of teaching impact of technology on the individual worker. Consider the experience of quantitative skills to a person with a non-quant background can be very a global logistics company that launched a digital transformation program difficult and he prefers to hire from the outside (see Figure 5: Essentials for to automate business processes. finding the common ground).

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 21 The initiative backfired because the company focused too much on the Additionally, a lack of investment in the workforce can have negative benefit to shareholders and not enough on employees. Some people’s work consequences on employee engagement, productivity and, ultimately, became a lot more complex, but it didn’t benefit them personally. In fact, a company reputation and brand. If employees feel that employers are invested post-transformation assessment revealed that the majority of workers had in their development, they are more likely to be motivated to work harder not adopted the new processes and were still using Excel spreadsheets— and stay longer in the workplace, improving productivity and retention. This defeating the very purpose of digital investment. creates a virtuous cycle, attracting new and better talent who know they will have opportunities to learn and grow.

Figure 5: ESSENTIALS FOR FINDING THE COMMON GROUND Employer Employee

Reticent about workforce Supports people on change Lacks confidence or Change Open to change in work concerned by future impact or resistant to in work within or outside within or outside company Openness giving support company workload/pressure Readiness Career Evades responsibility for Actively shapes people Actively shapes people Passively dependent on Ownership people development development development employer for career path

Skill Lacks persistence or Has only distant tasks to Makes adjacent tasks Persistent to learn new aptitude to learn Proximity offer in new setup available adjacent (or remote) skills even adjacent skills Ability Skill Fast learning curve on Urgent need of Reasonable lead time to Slow to learn and transition Time new skills close skill gap new skills

Intangible Values intangibles Otherwise disengaged or Values experience and associated with retained Values intangibles diversity of new hires values new experience Value individual associated with company outside company Value Tangible Return New hires are lower Views training as a Ready to co-invest time Expects employer to fully on Investment overhead or quicker return long-term investment and resources fund skill development

Source: Interview-survey of executives in Accenture and Aspen network

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 22 THE WAY FORWARD

There is no substitute for uniquely human qualities and characteristics like empathy, creativity and the ability to provide context for decision-making processes. But that does not mean the human workforce can stand idly by during this AI revolution. To make the most effective use of AI, workers need to develop different, deeper skill sets.

Advancing the missing middle skills is a matter of cultivating the right mindset, and that will prove to be the greatest responsibility for leaders. But the transition to the future workforce cannot be successful unless both executives and employees walk this journey together. We must all get ready to change, call upon scientific techniques and smart technologies, and embrace a lifelong learning mindset. Companies must reinvent organizational structures and processes to allow workers to be part of the process, while workers must embrace every opportunity to learn—for the long run. ABOUT THE Approach to map fusion skills & RESEARCH intelligences DECONSTRUCT For each human-only activity and missing- STEP 1 middle role, identify the long list of personal Accenture and the Aspen Institute Business and Society aptitudes required. Program (BSP) jointly conducted this research between January and August 2018 via interview surveys of nearly 40 company executives and subject matter experts. Accenture is an exclusive 2017-2018 Artificial Intelligence Content Partner for the Long-Term Strategy Group of the RECONSTRUCT Aspen BSP. The objective of our partnership is to Broadly categorize the long list of personal encourage an innovative approach to developing future STEP 2 aptitudes into core intelligences as described workforce strategies that allow the collaboration of people in academic literature. with artificial intelligence to create business value and wider societal benefits.

To develop the Fusion Skills and Intelligences Matrix, we adopted a three-step approach to build on the fusion skills MAPPING 1 & 2 framework described in “Human+Machine, Reimagining For each human-only activity and missing- Work in the Age of AI”, written by Accenture’s Paul Daugherty STEP 3 middle role, map the core intelligences as and James H. Wilson and published in March 2018.24 dominant or basic to create the “Fusion Skills and Intelligences Matrix” (see Figure 3 on page 9).

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 24 STEP 1 Deconstruction of Fusion Skills in the Missing Middle

Missing middle Fusion skill Definition Aptitudes identified

The ability to increase the time available for distinctly human • Interpersonal Re-humanizing time tasks, like interpersonal interactions, creativity and • Creative decision-making in a reimagined business process • Analytical, Practical

The act of responsibily shaping the purpose and perception • Ethical Humans manage Responsible normalizing of human-machine interaction as it relates to individuals, • Contextual awareness, Analytical, Strategic machines businesses and society • Enterprising, Gritty

• Analytical, Perceptive The judgment-based ability to decide a course of action Judgment integration • Intuition when a machine is uncertain about what to do • Ethical

Knowing how best to ask question of AI, across levels of • Business-savvy, Curiosity Intelligent interrogation abstraction, to get the insights you need • Strategic, Imaginative

Working well with AI agents to extend your capabilties and • Tech-savvy Humans manage Bot-based empowerment create superpowers in business processes & professional • Practical machines careers

The ability to develop robust mental models of AI agents to • Intuition Holistic melding improve process outcomes • Perception

Performing tasks alongside AI agents so they can learn new • Practical Humans manage Reciprocal apprenticing skills; and on-the-job training for people so they can work • Inspiring machines + well within AI-enhanced processes • Trustworthy, Ethical machines augment The rigorous discipline of creating new processes and • Imaginative, Creative humans Relentless reimagining business models from scratch, rather than simply automating • Enterprising old processes

Source: “Human+Machine” book authored by Paul R. Daugherty and James H. Wilson, published by Harvard Business Review Press (2018)

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 25 STEP 2 Academic Theories of Multiple Intelligences

Intelligence Accenture description adapted from academic literature Academic literature reference

Physical/sensory Physical movement, coordination, flexibility and sensory perception Howard Gardner (1983)

Andy Clark and David Chalmers (1998), Weisberg Ability to internalize technologies and objects in human thought Embodied or extended cognition and Newcombe, Dror and Harnard

Foresight, visioning, systems thinking, critical thinking, partnering, motivating and Michael Maccoby, Oxford and Harvard Business Strategic empowering others Press (2001, 2007)

Practical Ability to use existing knowledge and skills to find solutions and achieve goals Robert Sternberg’s triarchic theory (1997)

Ability to analyze, critique, judge, compare, evaluate, assess, including Robert Sternberg’s triarchic theory (1997) Analytical logical-mathematical intelligence

Creative Ability to use knowledge and skills to create, invent, discover, imagine, suppose, predict Robert Sternberg’s triarchic theory (1997)

Capacity to detect and respond appropriately to feelings, motivations and Howard Gardner (1983), Harvard University (1999) Interpersonal desires of others; cooperation and communication ability

Capacity to be self-aware and aware of inner feelings, values, beliefs and thinking Howard Gardner (1983), Gerd Gigerenzer, Max Intrapersonal processes; understanding of collective intelligence or intuition Planck Institute for Human Development (2011)

Capacity to understand right from wrong; empathy, compassion, conscience, self-control, Michele Borba (2001), Doug Lennick-Fred Kiel Moral respect, kindness, tolerance, fairness (2005), Beheshtifar, Esmaeli, Moghadam (2011)

Adaptability and a love of learning; belief that effort or training can change one’s qualities Carol Dweck (2000), Stajkovic and others (2015) Growth mindset and traits

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 26 References

1 Harvard Business Review, July-August 2018 issue, Collaborative Intelligence: Humans and AI are joining forces. https://hbr.org/2018/07/collaborative-intelligence-humans-and-ai-are-joining-forces

2 Occupational Information Network (O*NET) of the US Department of Labor and from the International Labour Organization (ILO)

3 Dylan Walsh, MIT Sloan newsroom, December 11, 2017, Soft skills training brings substantial returns on investment. http://mitsloan.mit.edu/newsroom/articles/soft-skills-training-brings-substantial-returns-on-in vestment/?utm_source=social&utm_medium=mitsloantwitter&utm_campaign=softskills; and World Bank, September 22, 2017: World Bank Study: Entrepreneur Training Focused on Mindset Proves More Effective Than Traditional Business Skills in West Africa. http://www.worldbank.org/en/news/press-release/2017/09/22/world-bank-study-entrepreneur-training-focused-on-mindset-proves-more-effective-than-traditional- business-skills-in-west-africa

4 Paul Daugherty and James H. Wilson, Human + Machine. https://www.accenture.com/gb-en/insight-human-machine-ai

5 Paul Daugherty and James H. Wilson, Human + Machine. https://www.accenture.com/gb-en/insight-human-machine-ai

6 Accenture, Reworking the Revolution, January 2018. https://www.accenture.com/us-en/company-reworking-the-revolution-future-workforce

7 Science Direct, Trends in Neuroscience and Education, March 2016. https://www.sciencedirect.com/science/article/pii/S2211949316300011

8 Accenture, Employee Experience Reimagined, March 2017. https://www.accenture.com/us-en/_acnmedia/PDF-64/Accenture_Strategy_Employee_Experience_Reimagined_POV.pdf

9 Fidelity Labs, Exploring Virtual Reality for Empathy Training, October 2017. https://www.fidelitylabs.com/2017/10/13/exploring-virtual-reality-for-empathy-training/

10 Paul Daugherty and James H. Wilson, Human + Machine. https://www.accenture.com/gb-en/insight-human-machine-ai

11 Re:work with Google, Create an employee-toemployee learning program. https://rework.withgoogle.com/guides/learning-development-employee-to-employee/steps/introduction/

12 Global Executive Learning, Learning Expedition. https://www.global-executive-learning.com/index.php/what-we-do/learning-expeditions

13 Aaron Pressman, Fortune, Can AT&T Retrain 100,000 People. http://fortune.com/att-hr-retrain-employees-jobs-best-companies/

14 Danone: https://www.danone.in/life-at-danone/your-development/

15 Lumina Foundation, Talent Investment Pays Off, https://www.luminafoundation.org/files/resources/discover-roi-executive-briefing.pdf

16 Techwire Asia, Online services bring affordable therapy to India’s tech workers, December 2017. https://techwireasia.com/2017/12/these-online-platforms-make-therapy-accessible-in-india/?_lrsc=a76e0ddd- 750e-4fda-9037-ad977d740d5e

17 TEDMED, The Paradox of Incentive Insensitivity, November 2018, https://tedmed.com/talks/show?id=528930

18 Brian Besanceney, 100 Training Academies, Endless Opportunties, LinkedIn, April 2017. https://www.linkedin.com/pulse/100-training-academies-endless-possibilities-brian-besanceney/?arti cleId=6260085091255533568

19 The Aspen Institute Future of Work Initiative: https://www.aspeninstitute.org/publications/lifelong-learning-and-training-accounts-2018/

20 SkillsFuture Singapore, www.skillsfuture.sg

21 Salesforce.com, https://trailhead.salesforce.com/en/superbadges; and Salesforce website and Elizabeth Woyke, MIT Technoloigy Review, Making Job-Training Software People Actually Want to Use, November 6, 2017 https://www.technologyreview.com/s/609295/making-job-training-software-people-actually-want-to-use/

22 World Bank, World Development Report 2019: The Changing Nature of Work, http://www.worldbank.org/en/publication/wdr2019

23 Accenture, Reworking the Revolution, January 2018. https://www.accenture.com/us-en/company-reworking-the-revolution-future-workforce

24 Paul Daugherty and James H. Wilson, Human + Machine. https://www.accenture.com/gb-en/insight-human-machine-ai

ADVANCING MISSING MIDDLE SKILLS FOR HUMAN–AI COLLABORATION 27 Authors About Aspen Institute Business & Society Program PAUL DAUGHERTY Chief Technology & Innovation Officer Accenture The Aspen Institute is a nonpartisan forum for values-based leadership and the exchange of [email protected] ideas. Launched in 1998, the Aspen Institute Business and Society Program (BSP) engages business leaders throughout the arc of their careers. We believe the private sector has EVA SAGE-GAVIN immense power to shape the long-term health of society and we work through dialogue, Senior Managing Director – Talent and Organization networks and public programs to place long-term, responsible decision-making at the heart Accenture Strategy of business practice and education. Our programs help business executives, investors and [email protected] business educators consider society’s “grand challenges” e.g., climate, inequality and global health, as inextricable from day-to-day operations and vital to long-term planning. MADHU VAZIRANI Visit us at https://www.aspeninstitute.org/programs/business-and-society-program. Principal Director Accenture Research [email protected] About Accenture

MIGUEL PADRO Accenture is a leading global professional services company, providing a broad range of Senior Program Manager Aspen Institute Business and services and solutions in strategy, consulting, digital, technology and operations. Society Program Combining unmatched experience and specialized skills across more than 40 industries [email protected] and all business functions–underpinned by the world’s largest delivery network–Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 459,000 Acknowledgments: people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. This publication was made possible by the contribution of Accenture Research colleagues, including Paul Barbagallo, Tomas Castagnino, Mauro Centonze, Francis About Accenture Research Hintermann, David Light, and James Wilson. Accenture Research shapes trends and creates data-driven insights about the most The authors would like to thank the many experts who pressing issues global organizations face. Combining the power of innovative research provided valuable thoughts and insight, including techniques with a deep understanding of our clients’ industries, our team of 250 Gayatri Agnew, Thierry Bonetto, Joseph Byrum, David researchers and analysts spans 23 countries and publishes hundreds of reports, articles and Blake, Albert Cho, Jessica Conser, Dan Darcy, Julie points of view every year. Our thought-provoking research–supported by proprietary data Gehrki, Claudine Gartenberg, David Gaal, James Giordano, Elizabeth Johnson, Sharla Jones, Jon Kaplan, and partnerships with leading organizations such as MIT and Singularity–guides our Kris Lande, Vivienne Ming, Daniel Magruder, Margie innovations and allows us to transform theories and fresh ideas into real-world solutions for Meacham, Daniel Needlestone, Andre Obereigner, Hugo our clients. Visit us at www.accenture.com/research. Petit, Rachael Rekart, Tim Shiple, Joe Speicher, Kees van der Vleuten, and the 10EQS team.

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